Posts tagged "4 months"

What credit score is needed to get the best fixed rate for consolidating accounts?

Any suggestions on how to raise credit scores in the range of 597-607 received from all 3 credit reporting agencies.
I have 2 mortgages which was done by the mortgage company a couple years ago to help my credit and both have high rates, 1 car loan, 5 credit cards, and a small loan company. I have been paying more on my credit cards the last 3 or 4 months to get the balances down. I want to consolidate the mortgages and the car loan in the future. But, not sure how high a credit score needs to be for the best fixed rate.
Thank you for any help.

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Does paying off your car loan early help your credit?

The simple answer is no there is really no advantage to your credit score by paying off an installment loan, a car loan, early. Installment loans are contract that details the amount of money borrowed and the terms of the loan agreement, which is a monthly payment promise over a specific period of time. Auto loans are typically 24-72 mos. Lenders are primarily concerned to see if borrowers understand this [ad]concept and continue to pay their monthly payments on time, over the length of the contract. Therefore, you receive no “credit” for paying early. In fact, this demonstrates that you don’t understand the contract that you signed. You will be penalized for paying late or not paying at all.

Many automobile loans can have, like mortgages,compounded interest terms but are not typical. In this case paying off your auto loan early may save you some money in interest it will not affect your credit score. Read your loan documents carefully to see if this applies to your case. It is advisable to make your regularly scheduled car payment and save the money to apply toward something else. This is a much better use of funds. Most car loans are for set amounts of money and that will always be the payoff, no matter when you pay if off. If you have this ordinary type of auto loan, make the payments monthly, since this is what you agreed to do.

Applying for credit shortly after a major purchase can have an adverse affect. If you are denied credit due to the large amount of the new loan, this will lower your credit score.

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